The People’s Bank of China (PBoC) considers stablecoins a threat to global financial stability and promises even stricter measures.
China’s Central Bank has issued a warning against stablecoins, calling them a tangible threat to the balance of the global financial system and pledging to intensify its crackdown on cryptocurrency-related activities within the country.
Speaking at the Financial Street Annual Meeting 2025 in Beijing, Pan Gongsheng, Governor of the PBoC, expressed deep concerns over stablecoins. According to Pan, fiat-backed stablecoins such as those pegged to the U.S. dollar have introduced new vulnerabilities into the international financial system, potentially undermining the monetary sovereignty of smaller economies.
Pan emphasized that cryptocurrencies are still in their early stages of development, despite the market’s growth in recent years. He noted that “stablecoins have amplified the structural weaknesses of the global financial system,” blaming them for fueling speculation and failing to comply with customer identification and anti–money laundering (AML) standards.
“Stablecoins, as a form of financial activity, still fail to meet the basic requirements of financial supervision,” Pan said at the conference. “They expose vulnerabilities that can facilitate illegal fund transfers, terrorist financing, and money laundering.”
Pan confirmed that the Central Bank will continue to work with law enforcement to combat cryptocurrency operations and speculative trading within mainland China. He described the PBoC’s past measures as “effective,” reaffirming the country’s zero-tolerance policy toward private digital currencies.
China’s strategy
Since 2017, China has maintained a total ban on crypto trading, mining, and exchange operations, citing financial risks and potential consumer harm. The PBoC has consistently framed digital assets as a threat to economic order while simultaneously promoting the state-backed digital yuan (e-CNY) as a safer, more controllable alternative.
Pan also announced that the Central Bank will “closely monitor and assess the development of stablecoins in foreign markets,” suggesting that the PBoC remains vigilant about how the growth of foreign stablecoins could impact China’s financial stability.
